Correlation Between Guangzhou Haozhi and Sichuan Yahua
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Guangzhou Haozhi and Sichuan Yahua and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guangzhou Haozhi with a short position of Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Sichuan Yahua.
Diversification Opportunities for Guangzhou Haozhi and Sichuan Yahua
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Sichuan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial and Guangzhou Haozhi is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guangzhou Haozhi Industrial are associated (or correlated) with Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Sichuan Yahua
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 1.78 times more return on investment than Sichuan Yahua. However, Guangzhou Haozhi is 1.78 times more volatile than Sichuan Yahua Industrial. It trades about 0.06 of its potential returns per unit of risk. Sichuan Yahua Industrial is currently generating about -0.04 per unit of risk. If you would invest 906.00 in Guangzhou Haozhi Industrial on October 16, 2024 and sell it today you would earn a total of 1,005 from holding Guangzhou Haozhi Industrial or generate 110.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Sichuan Yahua Industrial
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Sichuan Yahua Industrial |
Guangzhou Haozhi and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Sichuan Yahua
The main advantage of trading using opposite Guangzhou Haozhi and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Sichuan Yahua can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sichuan Yahua will offset losses from the drop in Sichuan Yahua's long position.| Guangzhou Haozhi vs. Shanghai Ziyan Foods | Guangzhou Haozhi vs. Great Sun Foods Co | Guangzhou Haozhi vs. New Hope Dairy | Guangzhou Haozhi vs. Qingdao Foods Co |
| Sichuan Yahua vs. Shenzhen Bioeasy Biotechnology | Sichuan Yahua vs. Heilongjiang Publishing Media | Sichuan Yahua vs. Southern PublishingMedia Co | Sichuan Yahua vs. Changchun BCHT Biotechnology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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